|KCG TO LAUNCH NEW RISK ARBITRAGE GROUP|
KCG TO LAUNCH NEW RISK ARBITRAGE GROUP
JERSEY CITY, N.J. - February 24, 2015 - KCG Holdings, Inc. (NYSE: KCG) today announced the launch of its risk arbitrage group, a new offering specifically dedicated to providing clients with insight into complex and special situations through expert regulatory and event arbitrage-related analysis.
Greg Tusar, Co-Head of KCG's Global Execution Services and Platforms commented: "Whether it's executing a trade, tailoring an algorithmic strategy or evaluating execution quality venue by venue, our clients look to us for market expertise and smart solutions. With the addition of a dedicated risk arbitrage group, we can provide an additive analysis and trading offering to current clients and reach new clients, as well."
As part of the newly formed team, Eric Laumann has been appointed Head of Risk Arbitrage. The team will include Jason King and veteran event-driven trader Louis Juliano.
Reflecting on his new role, Mr. Laumann said: "In today's investment environment, clients are constantly looking for deeper analysis of events and their outcomes. A special situation can have a significant impact on a clients' strategy, portfolio or fund. Managing and optimizing event related risk is critical. Our offering is a fitting complement to the range of services KCG currently provides clients and I am looking forward to leading this exciting new offering."
Mr. Laumann brings over 20 years of experience in event arbitrage-related services and complex, multi-billion dollar civil litigation to his role at KCG. He joins from Millennium Partners, where he was a risk arbitrage co-portfolio manager. Prior to that, Mr. Laumann held several leadership positions in event arbitrage, including Managing Director and Head of the North American risk arbitrage desk at Credit Suisse, senior member of Bear Stearns' buy-side/sell-side risk arbitrage desk, and senior analyst on Deephaven Capital Management's event arbitrage team.
As a litigator, Mr. Laumann held positions at Weil, Gotshal, & Manges, Jenner & Block, Kasowitz, Benson, Torres & Friedman and Sullivan & Cromwell and clerked for the U.S. District Court for the Eastern District of Pennsylvania. Mr. Laumann holds an A.B. with high honors in economics from the University of Michigan and a J.D. cum laude from the University of Pennsylvania. He is a member of the Bar in New York and an inactive member of the Bar in Illinois and California.
Mr. King brings over 15 years of experience to his new event arbitrage role at KCG. He joins the team from Cantor Fitzgerald, where he served as Managing Director of the Risk Arbitrage desk. Prior to Cantor Fitzgerald, Mr. King was Managing Director and Head of the Securities Risk Arbitrage desk at UBS, and also served in senior management roles on the risk arbitrage desks at JP Morgan and Credit Suisse. He holds a B.S. in Finance and Business Administration from Fordham University.
Certain statements contained herein may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," "positions," "prospects" or "potential," by future conditional verbs such as "will," "would," "should," "could" or "may," or by variations of such words or by similar expressions. These "forward-looking statements" are not historical facts and are based on current expectations, estimates and projections about KCG's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Any forward-looking statement contained herein speaks only as of the date on which it is made. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict including, without limitation, risks associated with: (i) the strategic business combination (the "Mergers") of Knight Capital Group, Inc. ("Knight") and GETCO Holding Company, LLC ("GETCO"), including, among other things, (a) difficulties and delays in integrating the Knight and GETCO businesses or fully realizing cost savings and other benefits, (b) the inability to sustain revenue and earnings growth, and (c) customer and client reactions to the Mergers; (ii) the August 1, 2012 technology issue that resulted in Knight's broker-dealer subsidiary sending numerous erroneous orders in NYSE-listed and NYSE Arca securities into the market and the impact to Knight's business as well as actions taken in response thereto and consequences thereof; (iii) the sale of KCG's reverse mortgage origination and securitization business, sale of KCG's futures commission merchant and the agreement to sell KCG Hotspot; (iv) changes in market structure, legislative, regulatory or financial reporting rules, including the increased focus by regulators, the New York Attorney General, Congress and the media on market structure issues, and in particular, the scrutiny of high frequency trading, alternative trading systems, market fragmentation, colocation, access to market data feeds, and remuneration arrangements such as payment for order flow and exchange fee structures; (v) past or future changes to organizational structure and management; (vi) KCG's ability to develop competitive new products and services in a timely manner and the acceptance of such products and services by KCG's customers and potential customers; (vii) KCG's ability to keep up with technological changes; (viii) KCG's ability to effectively identify and manage market risk, operational and technology risk, legal risk, liquidity risk, reputational risk, counterparty and credit risk, international risk, regulatory risk, and compliance risk; (ix) the cost and other effects of material contingencies, including litigation contingencies, and any adverse judicial, administrative or arbitral rulings or proceedings; and (x) the effects of increased competition and KCG's ability to maintain and expand market share. The list above is not exhaustive. Readers should carefully review the risks and uncertainties disclosed in KCG's reports with the SEC, including, without limitation, those detailed under "Risk Factors" in KCG's Annual Report on Form 10-K for the year-ended December 31, 2013, under "Certain Factors Affecting Results of Operations" in KCG's Quarterly Report on Form 10-Q for the period ended September 30, 2014 and other reports or documents KCG files with, or furnishes to, the SEC from time to time.